On Friday Feb. 11th the Obama administration will release their proposals on what should be done with the nation’s two largest mortgage lenders Fannie Mae and Freddie Mac. Fannie and Freddie were created by the US government but ran as private companies which attracted investors because of an inherent government guarantee. While the real estate market was thriving, the two companies invested in low quality loans which lead to the 2008 takeover costing the American taxpayers 150 billion plus. In the long run only foreclosure lawyers benefited from the bad decisions of Fannie and Freddie executives.
Both Republican and Democrats differ on what to do with the mortgage giants in light of the real estate market’s current fragility. The low quality loans issued by the bank lead to many defaults and foreclosures contributing to the collapse of the housing industry. In the two years since the bail out of Fannie Mae and Freddie Mac the real estate market has seen a significant downturn while foreclosure lawyers saw a boom in business. Some lawmakers propose turning Fannie and Freddie into catastrophic insurance guarantors who assure private banks should they face troubles.
What happens to Fannie and Freddie will have huge impacts on the real-estate and building markets. The purpose of the 2008 buyout was to stabilize the housing market which was achieved but hasn’t seen any significant gains. If your one of the thousands of people facing foreclosure get the advice of a foreclosure attorney to help you keep your home.
